Ingredient Unit Costs

The first simple calculation you need for all further calculations is for unit cost. Often the purveyor’s invoice indicates unit cost: for example, 10 lb apricots at $2.00 per pound, totaling $20.00 (10 × $2.00 = $20.00). In other cases, you must make this calculation, using the following formula:

• Total cost ÷ number of units = unit cost

• Example 1. A case of mangoes weighing 15 lb costs $25.00. What is the cost per pound?

  $25.00 ÷ 15 lb = $1.67 per lb

• Example 2. A 45-kg sack of patent flour costs $20.00. What is the cost per kilogram?

  $20.00 ÷ 45 kg = $0.45 per kg (rounded up)